Construction Information Services has reported a decline in the number and value of plans submitted and approved in the first three months of 2024.
The value of submissions is down 70pc from €115.9m in Q1 2023 to €67.9m in Q1 2024.
Factors currently hindering the sector’s progress include a shortage of hospitality staff, increases in minimum wage, food costs, and utility/energy bills/rents.
- Planning applications submitted in Q1 2023 are down v Q1 2024. By comparison, Q3 2023 saw an increase back to Q1 2023 levels.
- The number of hotel bedrooms being proposed fell considerably Q1 2023 v Q1 2024 – 957 rooms v 294 rooms.
- The value of hotel works being proposed has fallen to €64.7 million in Q1 2024, a significant drop on the comparative period in Q1 2023 (€171 million).
- Project starts were highest in Q1 2024, comparable with Q1 2023.
- There is a slight rise in the number of bedrooms being created when comparing Q1 2023 (395) v Q1 2024 (476)
- There has been a drop in value from €115.9m (Q1 2023) to €67.9m (Q1 2024).
The survey found “in terms of the overall hospitality sector including pubs, clubs and guest houses etc, we can see that there is a decline in the number and value of plans submitted and approved when comparing Q1 2023 and Q1 2024.”
“The pandemic years had an obvious impact on Irish hospitality venues, however there are now other factors very much hindering the sector to move forward – lack of hospitality staff, increase in minimum wage, increase in food costs, increase in utility/energy bills/rents.
The hospitality sector must now respond to tourists changing needs and preferences with emphasis on luxury hotel accommodation and facilities. According to CBRE from 2030 onwards, the best hotels will offer highly personalised guest experiences, smart room features, sustainable travel options and attractive employee opportunities.”
See full report here.
